The Effects of Dynamic Capabilities on Innovation Performance: The Moderating Effects of Strategic Orientation

Existing research on the relationship between dynamic capabilities and innovation is still at the theoretical derivation level, and research on the boundary conditions mainly focus on the environmental factors, ignoring the firm strategic factors. This study divides dynamic capabilities into two dimensions, namely an external integration-oriented opportunity-recognizing capability and internal integration-oriented opportunity-exploiting capability, and empirically tests their impact on innovation performance and its contingencies. The result shows that opportunity-recognizing capability and opportunity-exploiting capability have a significant positive impact on innovation performance. Both technology orientation and market orientation positively moderate the relationship between opportunity-recognizing capability, opportunity-capitalizing capability and innovation performance.